Proposed Partnership Supports the Company's ongoing Strategic Shift Toward Clean Energy and Energy Storage Solutions

WEIFANG, China, June 15, 2026 /PRNewswire/ -- Hongli Group Inc. (NASDAQ:HLP) (the "Company" or "Hongli Group"), a cold roll formed steel profile manufacturer, today announced that it has entered into a non-binding Memorandum of Understanding ("MOU") with Sidus Energy Storage, Inc. ("Sidus"), a California-based battery technology company, to explore a potential strategic manufacturing collaboration relating to advanced battery and energy storage products targeting the high-growth North American and European energy storage markets.

This proposed collaboration represents a further step in Hongli Group's clean energy evaluation. It follows the Company's recent initiatives over the past two months, including the planned formation of its New Energy Solid-State Battery Division and the engagement of Dr. Phillip A. Medina IV as Independent Technical Advisor to capture high-margin energy storage opportunities.

This strategic MOU is designed to leverage Hongli Group's deeply entrenched industrial manufacturing capabilities alongside Sidus's battery technology. Sidus has licensed foundational battery technology from IBM and has successfully developed advanced battery products characterized by high energy density. The parties intend to jointly evaluate product development, automated production feasibility, capacity planning, and supply chain localization.

As contemplated by the MOU, Hongli Group is expected to contribute its extensive mass-production experience, scalable operational infrastructure, and business expansion expertise to support the proposed collaboration, including with respect to the potential development, construction and operation of manufacturing facilities. The Company's precision profile design is suited to optimize the structural integrity and cost-efficiency of battery enclosures, packs, and racking infrastructure. Sidus is expected to contribute to its IBM-licensed battery technology, product know-how, technical specifications, and established commercial pipelines to accelerate time-to-market.